Stock Strategist: Schwab-TD Ameritrade Merger Can Create Value in Face of Low Rates

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Schwab-TD Ameritrade Merger Can Create Value in Face of Low Rates The combination will cement Schwab's position as one of the key players in the financial sector. [tab_bar] by Michael Wong, CFA, CPA | 5/25/2020 5:30:00 PM The primary topic for investors looking at Charles Schwab [SCHW]( is the pending merger with TD Ameritrade [AMTD](. The two companies announced the deal in November 2019 and hope to complete it in the second half of 2020. We believe the merger is more likely than not to occur and currently incorporate a 75% probability of its going through in our valuation model. We don’t see much antitrust concern regarding combining the two companies’ retail online brokerage businesses, as there are many online brokerage companies and the space is very competitive. However, the combined registered investment advisor businesses of the combined companies will likely have upward of 40% market share by assets. There are many types of wealth management firms, though, and we estimate that the combined companies’ market share of wealth management assets is probably only a mid- to high-single-digit percentage. To read more, click [here](. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio](. Search Most Recent Articles [Weekly Wrap: How Funds, Stocks, and Investors Continue to Fare Against the Coronavirus]( [3 Dividend ETFs That Play Good Defense]( [From the Archives: Pale Yale--What the Yale Model Can't Teach Retail Investors]( Latest Analyst Reports [Estee Lauder Companies]( [Expedia Group]( [Eversource Energy]( [Extra Space Storage]( [Change Healthcare]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.